Ethics in Management and Institutionalization of Ethics

Abstract

Throughout world economies, place and role of government and public sector have weakened over time, and on the other hand, efficiency, function, and responsibility of the business world and private sector have increased on the global market system. In addition, changing and developing socio-cultural structure has increased social sensitivity stakeholders' consciousness and importance given to ethic values due to increasing social necessities. Ethics turned out to be one of the most important management subjects for entities and governors in the business world. Ethical performance and ethical quality of enterprises are also important for social responsibility towards all stakeholders, enterprises' ethical values, reputation of the enterprise, increasing brand value of goods produced or service provided, providing trust and support of investors, customers, and the public. In this context, ethics, managerial ethics, institutionalization of ethics, and importance of ethical principles in enterprises in terms of corporate managerial principles are evaluated in this chapter.

Key Terms in this Chapter

Ethics: Ethics is the total of universal principles and norms effective in evaluation approaches and behaviors of mankind in the past, at present and in the future, as good or bad, correct or wrong, formation and evaluation of solution suggestion for emerging new problems.

Ethical Norms: Ethical norms provide guidance for all organizations for behaving good and keeping away from bad behaviors promotes ethical behaviors in organizations, sets the stage for coherent working environment which contains justice, honesty, neutrality, and responsibility.

Managerial Ethics: Principles and behavioral norms which should be fulfilled in managerial actions.